Henderson County role Flat Rock Playhouse debated

Commission OKs $100,000 lump sum

Published: Thursday, May 31, 2012 at 7:05 a.m.

Last Modified: Thursday, May 31, 2012 at 7:05 a.m.

To give or not to give to Flat Rock Playhouse: That was the question Henderson County commissioners wrestled over during a special-called budget meeting Tuesday night.

In the end, the board granted a double dose of funding for the playhouse. It not only approved a $100,000 lump-sum payment, but it also voted to pursue legislation that would raise the county hotel occupancy tax by 1 cent, with the intent of steering extra revenue to the playhouse.

Both measures were initiated by Commissioner Mike Edney, who said those associated with the playhouse are "a major part of the business community within the county," and that they should be appreciated, and rewarded, for stepping up their role in the community by establishing a second venue on Main Street in Hendersonville.

"These folks made a commitment to bring (the playhouse) to all of Henderson County by coming to downtown," he said.

Commissioner Larry Young, however, balked at both of Edney's funding initiatives, saying county tax dollars do not need to be spent on a private entity like the Playhouse.

"If we have another $100,000, give it to the schools, give it to the sheriff's department, give it to the people that are providing public safety and welfare," said Young, chairman of the county's Travel and Tourism board. "I am totally against funding them with county tax dollars, and I'm totally against asking our legislators to go down and pass a 1-cent room tax that's going to hurt our motels."

The 1-cent hike would bring the county's room-tax rate to the state limit of 6 percent, making it higher than Transylvania (5 percent), significantly higher than Buncombe (4 percent) and double that of Polk (3 percent). That prospect has some in the industry worried.

"We lose reservations because of the difference in the occupancy tax rate between us and the surrounding counties," Kaye Caldwell, who owns some vacation-rental properties in the Edneyville area, told commissioners during a public hearing that coincided with the board's meeting.

"When I lose reservations because of that, it's not typically a two- or three-day reservation but a weeklong reservation. That makes a big difference to me, losing those reservations. So I lose a lot of money when somebody walks out the door and says, ‘I'm going to Polk County because they're only charging me half as much for this tax.' "

Edney, on the other hand, contends that travelers typically won't let a higher room-tax rate discourage them from visiting a specific area they're already committed to. And, he said, the playhouse's ability to draw tourists on its own makes the measure worthwhile — particularly considering the fact the Henderson County Heritage Museum receives a half-cent room-tax allocation from the 5 percent rate currently collected by Travel and Tourism.

Beth Carden, interim director of Travel and Tourism, said her department typically sets aside about $20,000 to $30,000 a year for various organizations in the county to use specifically for marketing and advertising to "get heads in beds," with a $5,000 limit per entity.

Several representatives of the playhouse also spoke during the public hearing, saying the playhouse will draw nearly 100,000 guests this year — about 60 percent of whom will be tourists — and that it provides more than $10 million in economic impact to the area.

"I think you need to understand that Flat Rock Playhouse is not just Flat Rock anymore, OK?" Edney said to Young. "I understand Travel and Tourism would like to control that money, and that's a reasonable thing, but you've got to agree with me that Flat Rock Playhouse brings in a whole lot more than the Heritage Museum does. And I like (the museum), but they get their money dedicated. So are you saying that that was a mistake, too?"

"No," Young responded, "I'm saying that the Heritage Museum is an entity of the county, and we're the corporation officers of the Heritage Museum."

"So are you saying it brings in tourists left and right?" Edney countered.

"I'm saying it brings some tourists," Young said. "And I'm not claiming the amount that Flat Rock Playhouse is claiming because I don't think they can justify their figures."

Young added that he has no problem asking Travel and Tourism to help the playhouse, but that he also would encourage financial support from the Village of Flat Rock.

"I would like to go to the mayor of Flat Rock and say, ‘How much are y'all willing to help, and maybe Travel and Tourism can match what you're going to give them,' because (the playhouse) is in Flat Rock, and they've been sitting on a lot of sales tax over the years, so it's time for them to step up and play their part," Young said.

Edney said he spoke recently with state Sen. Tom Apodaca and state Rep. Chuck McGrady, who told him the deadline for filing local bills is about a week away, and that they would introduce a bill on the proposed room-tax increase only if commissioners voted to support it.

<p>To give or not to give to Flat Rock Playhouse: That was the question Henderson County commissioners wrestled over during a special-called budget meeting Tuesday night.</p><p>In the end, the board granted a double dose of funding for the playhouse. It not only approved a $100,000 lump-sum payment, but it also voted to pursue legislation that would raise the county hotel occupancy tax by 1 cent, with the intent of steering extra revenue to the playhouse.</p><p>Both measures were initiated by Commissioner Mike Edney, who said those associated with the playhouse are "a major part of the business community within the county," and that they should be appreciated, and rewarded, for stepping up their role in the community by establishing a second venue on Main Street in Hendersonville.</p><p>"These folks made a commitment to bring (the playhouse) to all of Henderson County by coming to downtown," he said.</p><p>Commissioner Larry Young, however, balked at both of Edney's funding initiatives, saying county tax dollars do not need to be spent on a private entity like the Playhouse.</p><p>"If we have another $100,000, give it to the schools, give it to the sheriff's department, give it to the people that are providing public safety and welfare," said Young, chairman of the county's Travel and Tourism board. "I am totally against funding them with county tax dollars, and I'm totally against asking our legislators to go down and pass a 1-cent room tax that's going to hurt our motels."</p><p>The 1-cent hike would bring the county's room-tax rate to the state limit of 6 percent, making it higher than Transylvania (5 percent), significantly higher than Buncombe (4 percent) and double that of Polk (3 percent). That prospect has some in the industry worried.</p><p>"We lose reservations because of the difference in the occupancy tax rate between us and the surrounding counties," Kaye Caldwell, who owns some vacation-rental properties in the Edneyville area, told commissioners during a public hearing that coincided with the board's meeting. </p><p>"When I lose reservations because of that, it's not typically a two- or three-day reservation but a weeklong reservation. That makes a big difference to me, losing those reservations. So I lose a lot of money when somebody walks out the door and says, 'I'm going to Polk County because they're only charging me half as much for this tax.' "</p><p>Edney, on the other hand, contends that travelers typically won't let a higher room-tax rate discourage them from visiting a specific area they're already committed to. And, he said, the playhouse's ability to draw tourists on its own makes the measure worthwhile — particularly considering the fact the Henderson County Heritage Museum receives a half-cent room-tax allocation from the 5 percent rate currently collected by Travel and Tourism.</p><p>Beth Carden, interim director of Travel and Tourism, said her department typically sets aside about $20,000 to $30,000 a year for various organizations in the county to use specifically for marketing and advertising to "get heads in beds," with a $5,000 limit per entity.</p><p>Several representatives of the playhouse also spoke during the public hearing, saying the playhouse will draw nearly 100,000 guests this year — about 60 percent of whom will be tourists — and that it provides more than $10 million in economic impact to the area.</p><p>"I think you need to understand that Flat Rock Playhouse is not just Flat Rock anymore, OK?" Edney said to Young. "I understand Travel and Tourism would like to control that money, and that's a reasonable thing, but you've got to agree with me that Flat Rock Playhouse brings in a whole lot more than the Heritage Museum does. And I like (the museum), but they get their money dedicated. So are you saying that that was a mistake, too?"</p><p>"No," Young responded, "I'm saying that the Heritage Museum is an entity of the county, and we're the corporation officers of the Heritage Museum."</p><p>"So are you saying it brings in tourists left and right?" Edney countered.</p><p>"I'm saying it brings some tourists," Young said. "And I'm not claiming the amount that Flat Rock Playhouse is claiming because I don't think they can justify their figures."</p><p>Young added that he has no problem asking Travel and Tourism to help the playhouse, but that he also would encourage financial support from the Village of Flat Rock.</p><p>"I would like to go to the mayor of Flat Rock and say, 'How much are y'all willing to help, and maybe Travel and Tourism can match what you're going to give them,' because (the playhouse) is in Flat Rock, and they've been sitting on a lot of sales tax over the years, so it's time for them to step up and play their part," Young said.</p><p>Edney said he spoke recently with state Sen. Tom Apodaca and state Rep. Chuck McGrady, who told him the deadline for filing local bills is about a week away, and that they would introduce a bill on the proposed room-tax increase only if commissioners voted to support it.</p><p>Reach Glancy at 828-694-7860 or gary.glancy@blueridgenow.com.</p>